Better Buy: GE vs. Raytheon Technologies
Two industrial giants have had a very difficult 2020. The COVID-19 pandemic has hit the commercial aviation industry hard, and both have heavy exposure to the industry. In fact, they're fierce competitors, with rival engines on the Airbus A320neo. But investing is all about what's coming around the corner, so let's look at whether General Electric (NYSE: GE) or Raytheon Technologies (NYSE: RTX) are good values right now.
There's no point ignoring the elephant in the room. To consider buying these stocks, you need to believe two things:
If you aren't positive on the commercial air travel market, and in particular if you're sure there are likely to be concerns about the pace of the recovery, then read no further. That's something likely to be dictated by the ongoing attempt to contain the pandemic and the financial condition of the airlines. A widely available COVID-19 vaccine would certainly help matters, but even that might not allay passenger fears over travel. In addition, a second wave of the pandemic would definitely complicate matters.
Source Fool.com
